On January 1, 2018, ABC Company entered into a five-year nonrenewable operating lease, commencing on that date, for office space. The office space has a useful life of 50 years and the lease specifies that in the first two years, rent will be P20,000 per month but in the last three years, it will be P25,000 per month. How much is the total rent receivable at the end of2019?

Q: On September 1, 2021, Fantastic Company leased furniture and fixtures from Gorgeous Company under a…

A: The net income is calculated as difference between revenue and expenses of the current period.

Q: Comex Limited, as the lessee, has entered into two new lease contracts with the Liveter Group Ltd as…

A:

Q: On January 1, 2021, BEE Corporation signed a 3-year operating lease for various office furniture and…

A: Additional rent = (BEE’s sales for the year ended Dec. 31, 2021 - ₱2,000,000) X 5% =…

Q: Steak Town Company leased equipment for its nine-year useful life, agreeing to pay P500,000 at the…

A: For the determination of lease liability and interest expense for the year December 31, 2022, We…

Q: On May 1, 2021, ABC Company leased furniture and fixtures from XYZ Company under a one-year…

A: Total rent for the year = (P12,000 per month x 2 months) + (P18,000 per month x 4 months) + (P15,000…

Q: On January 1,2020, ABC Company leased its equipment to DEF Company under a 3 year operating lease at…

A: Base Rent on operating lease is recognized on a straight line basis over the period of lease.…

Q: As an incentive to enter a 4 year operating lease for a warehouse, Dunhill Company received an…

A: Lease is a type of contract between two parties under which the actual owner of the asset who is…

Q: Cazenovia, Inc. entered into a five-year lease for equipment that was valued at $95,000. The company…

A: As per IFRS 16, LEASES Lease liability that should be recognised on commencement of lease is present…

Q: On August 1, 2019, Pha Aviation leased two helicopters from Wayo Aircraft for an initial period of…

A: solution given: the schedule of lease payment is given as 1st two months - P15,000 per monthNext…

Q: On 1 July 2020, the company had entered into a five-year lease agreement for an asset with RF…

A: Amount charged to Income statement = Interest expense + Amortization Expense

Q: Prepare Sheridans' December 31, 2019, journal entries assuming the implicit rate of the lease is 10%…

A: Particular  year  Cashflow PVF@ 10%  PV of cashflows  Lease receipts  0 $36100.00 1.000 $36100.00…

Q: Carla Corporation enters into a 5-year lease of equipment on December 31, 2019, which requires 5…

A: A lease is an agreement where an asset is taken on rent and Lessor receives Lease rental in…

Q: On May 1, 2021, ABC Company leased furniture and fixtures from XYZ Company under a one- year…

A: Total rent for the year = (P12,000 per month x 2 months) + (P18,000 per month x 4 months) + (P15,000…

Q: On August 1, 2019, Pha Aviation leased two helicopters from Wayo Aircraft for an initial period of…

A: Prepaid rent refers to the rent which is paid in advance for the rental period and it is recorded…

Q: Metlock Corporation enters into a 6-year lease of equipment on January 1, 2017, which requires 6…

A: Lease Receivable: It is a contract under which one party is agreed to rent an asset. This property…

Q: On 1 July 2020, the company had entered into a five-year lease agreement for an asset with RF…

A: Amount charged to Income statement = Interest expense + Amortization Expense

Q: On April 1, 2019, Golden State Company leased a delivery truck from Warriors Company under a…

A: Total rent payable during the lease term = (P200,000 x 9 month) + (100,000 x 18 months) + (80,000 x…

Q: On January 1, 2020, Paulina Co. leased an equipment from Gabriela Inc. for a period of 5 years.…

A: Lease liability = Present value of minimum lease payment + Bargain Purchase price paid   =…

Q: "What is BIGBOO Corp.'s rent income for the year ended December 31, 2021? For numbers 1 and 2,…

A: Average monthly rent = Total rent for the lease / Lease term = P93000/12 months = P7,750

Q: On June 1, 2018 ABC Company entered into a 5-year nonrenewable lease, commencing on that date, for…

A: Definition: Revenues: Revenues are earnings from operations of a business. The operating activities…

Q: On April 1, 2021, Primer Corp. signs a five-year lease to use office space. The present value of the…

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: On January 1, 2012, Singhai Ltd. signed a three-year lease on a delivery truck. The lease requires…

A: Interest for 2012 = Present value of annual payments x rate of interest x no. of years = $75,000 x…

Q: On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease…

A:

Q: On May 1, 2021, ABC Company leased furniture and fixtures from XYZ Company under a one-year…

A: Total rent for the year = (P12,000 per month x 2 months) + (P18,000 per month x 4 months) + (P15,000…

Q: On August 1, 2019, PhaAviation leased two helicopters from WayoAircraft for an initial period of 12…

A: Answer: How much is PhaAviation’s rent expense for the year ended December 31, 2019? Correct answer…

Q: On January 1, 2018, ABC Company entered into a five-year non-renewable operating lease, commencing…

A: Rent receivable represents an asset for the company. It is required to be presented in the balance…

Q: On January 1, 2022, Jessie Company signed a 5-year operating lease for office space at P3,600,000…

A: Operating Lease: In finance, an operational lease is a contract that authorizes the use of an asset…

Q: On June 1, 2018, ABC Company entered into a 5-year nonrenewable lease, commencing on that date, for…

A: Lease: It is an agreement between the two parties, in which the lessor leases the asset to the…

Q: On January 1,2020, Cookie Company leased an equipment from Sydney Company for 8 years with annual…

A: Initial measurement of Right-of-Use Asset and lease liabilities: Year PV Factor @ 10% Annual…

Q: Co. enters into a 4-year lease of office equipment. The rent in 2021 is P10,000 and shall increase…

A:

Q: .On August 1, 2020, Sputnik Company leased furniture and fixtures from Home Company under a one-year…

A: Formula: Total rent expense = Per month rent x Number of months.

Q: On August 1, 2021, PAC Aviation leased two helicopters from Fast Aircraft for an initial period of…

A: Option (b) i.e. Rent revenue of P52,500 and unearned rent of P13,500. Further explanation is…

Q: On December 31, 2020, Cleeneth Company leased equipment under a finance lease. Annual lease payments…

A: Calculation of Lease liability for the year 31st Dec , 2020.

Q: On November 1,2020, ABC Company leased a piece of furniture to XYZ Corporation under a 9-month…

A:

Q: On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease…

A: Definition: Journal entry: Journal entry is a set of economic events which can be measured in…

Q: .Inn Company leased office premises to Ava, Inc. for a two-year term beginning March 1, 2021 up to…

A: Formula: Total Rent revenue = Number of months x Rent per month.

Q: On December 31, 2020, Roe Company leased a machine from Colt Company for a five-year period Equal…

A: Lease liability :— It is the obligation of making payment under the lease term by lesse to lessor.…

Q: On January 1, 2018, JOSH Corporation leased out an office space for 15 years to PH Corporation at an…

A: Lease is a type of contract which provides the lessee the right to use the asset of the lessor and…

Q: Sheridan Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6…

A: Calculation of Present value of Minimum lease payments/Lease liability   Period Particulars…

Q: On December 31, 2019, Sin Company signed a five-year, non-cancelable lease for a machine with…

A: Right of Use Asset (ROU) is calculated as present value of lease payments. This will be recorded in…

Q: On January 1, 2019, Travel Corporation signed an 8-year operating lease for office space at P300,…

A: Additional rent for 2019 = (annual company sales - 2000000) x 5% = (2500000-2000000)*5% = P25,000

Q: On January 1, 2018, ABC Company entered into a five-year nonrenewable operating lease, commencing on…

A: Lease: It is a formal agreement between two parties where in one party lends to another, property or…

Q: On January 1, 2018, QuickStream Communications leased telephone equipment from Digium, Inc. Digium’s…

A:

Q: At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year…

A: 1)   Effect of the lease on Café Med’s earnings for the first year  $…

Q: August 1, 2021, PAC Aviation leased two helicopters from Fast Aircraft for an initial period of 12…

A: In the given case the amount of rent payable for August to December is::5 months . For the first 2…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.